216080.KQ WACC - Weighted Average Cost of Capital
The WACC of Jetema Co Ltd (216080.KQ) is 7.2%.
| Range | Selected | |
| Cost of equity | 6.3% - 8.6% | 7.45% |
| Tax rate | 15.4% - 35.3% | 25.35% |
| Cost of debt | 4.0% - 14.9% | 9.45% |
| WACC | 5.4% - 9.0% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.55 | 0.67 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 8.6% |
| Tax rate | 15.4% | 35.3% |
| Debt/Equity ratio | 0.48 | 0.48 |
| Cost of debt | 4.0% | 14.9% |
| After-tax WACC | 5.4% | 9.0% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 216080.KQ | Jetema Co Ltd | 0.48 | 0.41 | 0.3 |
| 001360.KS | Samsung Pharm Co Ltd | 0.03 | 0.73 | 0.71 |
| 002210.KS | Dongsung Pharmaceutical Co Ltd | 0.72 | -0.24 | -0.15 |
| 002800.KQ | Sinsin Pharmaceutical Co Ltd | 0.49 | 0.21 | 0.16 |
| 003060.KS | Aprogen Pharmaceuticals Inc | 1.16 | 1.47 | 0.78 |
| 003120.KS | Ilsung Pharmaceutical Co Ltd | 0 | 0.43 | 0.43 |
| 009300.KQ | Sam-A Pharm Co Ltd | 0.12 | 0.06 | 0.06 |
| 018680.KQ | Seoul Pharma Co Ltd | 0.39 | -0.06 | -0.04 |
| 047920.KQ | HLB Pharmaceutical Co Ltd | 0.03 | 0.36 | 0.35 |
| 072020.KQ | Choong Ang Vaccine Laboratory | 0.09 | 0.42 | 0.4 |
| Low | High | |
| Unlevered beta | 0.24 | 0.37 |
| Relevered beta | 0.33 | 0.51 |
| Adjusted relevered beta | 0.55 | 0.67 |
216080.KQ's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for 216080.KQ:
cost_of_equity (7.45%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.55) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.